Paraguay's Open Stance on China Trade Amidst Taiwan Ties

Paraguayan President Santiago Pena expressed openness to trade deals with China via Mercosur despite diplomatic ties with Taiwan. Paraguay's support for Taiwan has hindered grain exports to China. Mercosur is negotiating a trade deal with the EU and China. China urges Paraguay to rethink its Taiwan stance.

Paraguayan President Santiago Pena stated on Wednesday his willingness to engage in trade agreements with China through the South American trade bloc Mercosur, despite diplomatic connections with Taiwan. Paraguay's support for Taiwan has affected local farmers' grain exports to China, which asserts sovereignty over Taiwan. Paraguay remains the only South American nation with official relations with Taiwan, opposing China's claims.

Mercosur, comprised of Brazil, Argentina, and Uruguay, has been negotiating a long-awaited trade agreement with the European Union and has also explored a potential trade deal with China. Pena emphasized Paraguay's openness in these discussions but identified China's non-recognition of Taiwan as an obstacle. "We are in favor of advancing trade agreements," Pena said in an interview with Reuters.

China's foreign ministry spokesperson Mao Ning responded that China considers economic cooperation with Mercosur and other Latin American countries crucial. Mercosur officials held talks with Chinese representatives in Uruguay on August 12. Pena noted Uruguay's strong interest in the China agreement, indicating broad support for discussions as a bloc. The Chinese foreign ministry and the Chinese embassy in Uruguay have yet to comment.

(With inputs from agencies.)